Expenses and Loss of Subscribers: Can Streams End?

If from 2019 until last year, streamers were at war with each other to see which subscribers would choose, now they have to figure out how to survive without causing losses. Between good and bad quarterly results, a slowdown in subscription growth, employee layoffs, and cuts to original content, platforms are struggling to figure out what their next few years will look like.

streaming subscribers

Profit

In addition to new subscribers, which fluctuate over time, streamers need to figure out how to keep their services profitable.

In the report, Warner announced that it made $50 million in profit and is expected to continue positive this year. Disney, on the other hand, revealed that the streaming losses continue, but have decreased: they have dropped from $887 million to $659 million.

Netflix has been profitable since the pandemic.

Streaming strategies

And now?

Streaming growth rates are unlikely to return to pandemic levels. Platforms will have to think of new ways to stay profitable that don’t just depend on the number of subscribers.

Increasing your monthly rate and adding ads may be alternatives, but games are the obvious candidates for it. Netflix has already invested in a video game service, still in its early stages. Disney had a metaverse games division, which was shut down due to other cost cuts, but could see a resurgence.

It looks like this is going to be the new streaming trend. It remains to be seen whether other platforms will see this new possibility. If not, they will have to find other ways to stay relevant and workable.

With information from CNBC

The Post Spending and Losing Subscribers: Can Streams End? first appeared on Look Digital.

Source: Olhar Digital

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.